Greek Bank governor warns about economy shrinking further

Watching the news I found out that the Greek economy will shrink by two percent this year, more than the earlier expectation of between 0.3 percent and 1.2 percent, Bank of Greece Governor Giannis Provopoulos warned here on Monday.

The only way out of this crisis is through urgent drastic changes, decreases in the budget deficit and a turn to growth projects, he stressed, while presenting the bank's yearly monetary policy report to the parliament, which will on Monday evening hold another debate on the Greek Stability and Growth Program.

There is no doubt that Greece is one of the countries that have suffered more this economic crisis, and is clear that they are not close of solving the problem.

The budget revenues in the first two months this year increased 13.2 percent, which is higher than the target of 7.1 percent set by the government, while expenses decreased 9.6 percent and the target was 3.5 percent, the ministry said in the announcement.

In order to change the negative trend, the Greek government has to implement without wasting time the necessary reforms to reduce the deficit and focus on development, the report concluded.